C.A. No. 007738 / 2022

Under Section 2(15) of the Income Tax Act, 1961, an entity falling under the "advancement of any other object of general public utility" category loses its charitable status and tax exemption if its activities involve trade, commerce, business, or related services for consideration, regardless of how the resulting income is applied or whether profit-making is the dominant motive; however, statutory bodies and regulatory authorities exercising sovereign or public functions are not disqualified merely because they charge fees or levies incidental to such functions, and the proviso must be applied on a case-by-case basis examining the dominant nature of the entity's activities rather than applying a blanket exclusion.